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Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was
Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element per month $ 0 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for December: $ 108,650 $ 34,300 Variable element per client-visit $ 45.20 $ 13.30 1,600 5.40 10,000 1.80 3,800 0.20 $ 49,700 $ 20.70 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses $ 65,755 $ 14,380 $ 14,000 $ 4,210 The administrative expenses in the planning budget for December would be closest to: Multiple Choice $4,210 $4,296 $4,300 $4,290
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